Council awards $5.88M Legacy Drive construction contract; Prosper ISD to upfront funds under ILA

The council authorized the town manager to execute a construction agreement awarding CSP No. 2026-12-B to McMahon Contracting LP for the Legacy Drive/Prosper Trail project in the amount of $5,875,569.95 with a $200,000 construction contingency (total purchase order $6,075,569.95). Senior engineer Joshua Cotton described receiving nine proposals and said McMahon's bid fell below the engineer's estimate; "Our actual bids range from 5,800,000 to 7,800,000... McMahon Contracting was selected at or awarded, basically, pending town council approval," he told the council.

Staff explained an interlocal agreement (ILA) with Prosper ISD in which the district will advance contract deposits in two payments (initial deposit upon contract execution and a second at 50% construction), and the town will reimburse the district. Finance staff said reimbursement is expected to be completed through bond proceeds and that, depending on the bond timing, an 18-month reimbursement window applies from when bonds are issued. Council discussed liquidated damages ($1,000/day standard per local guidance) and contractor past performance; the motion to award the contract passed unanimously.

Staff said the ILA expanded the town’s ability to build needed four-lane sections and a multi-barrel culvert crossing and keeps the overall project cost under the original $10 million program estimate. Construction-term, performance, and reimbursement mechanics were clarified on the record; staff will return with contract documents and follow-up on the reimbursement schedule as bonds are issued.